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Exercise 9-4 Prepare a Flexible Budget Performance Report (L09-4) Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively

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Exercise 9-4 Prepare a Flexible Budget Performance Report (L09-4) Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Flexible Planning Results Budget Budget Flights (a) 56 56 54 $ 16,500 $ 19,320 $ 18,630 Revenue ($345.000) Expenses: Wages and salaries ($3,200 + $89.000) Fuel (533.000) Airport fees (5810 - $34.009) Aircraft depreciation (59.000) office expenses ($230 - $1.009) Total expense Net operating income 8,146 8,184 8,006 2,012 1,848 1,782 2,584 2,714 2,646 504 504 486 454 286 284 13700 13,536 13, 204 $ 2,300 $5,784 55,426 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. Required: 1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Required: 1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Actual Results Planning Budget 54 Flights 56 56 $ 16,500 S 19,320 $ 18.630 Revenue Expenses Wages and salanes Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income 8.184 1,848 2.714 8,006 1.782 2.646 8.146 2012 2.584 504 454 13,700 2.800 504 286 486 284 13.204 5 426 13,536 5,784 $ S S

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